Finance and governance reforms in education. Feb 14, 2009. Presented by: Lars Sondergaard World Bank. The World Bank. Efficiency of spending is poor in the ECA region…. Student-teacher ratios. cheaper. more expensive. Source: World Bank EdStat and World Bank estimates.
Finance and governance reforms in education
Feb 14, 2009
The World Bank
Source: World Bank EdStat and World Bank estimates
Remainder of presentation:
A local government is losing students and is, therefore, considering closing one of its schools.
-> Lack of incentives!
Question: Are there other financing systems that work better? If so, what are the pros and cons of such systems?
Who is responsible?
Who has an incentive
to be proactive?
Is the responsible
empowered to do
Someone may be formally responsible but does he/she have an incentive to be pro-active?
-> With input-based financing, the answer is often no or unclear!
Input-based financing places education managers in a straight-jacket: they have very limited ability to respond to new problems and innovate
Who is responsible for identifying failing schools and turning them around?
Who is responsible for reducing student drop outs?
Who is responsible for ensuring that innovations gets spread and adopted?
Who is responsible for ensuring that resources are spent wisely?
One block of money based primarily (but not exclusively) on how many students are located in municipality
Bulgaria (2005) Challenge 1: Quality had fallen and was seen as unacceptably low
Challenge 2: More money wasn’t (yet) buying better quality
Amount “freed up”
-> In Bulgaria, the sector gets to keep the savings and can now ask: where are these savings best re-invested to raise quality of learning!
Impact of school closures?
-> You need a broad political consensus that the quality of education will not be improved unless some drastic measures are done.